All Forum Posts by: Mark S.

I'm surprised no one has replied " he eventually pays and with late fees, so I make even more $$, so I'd keep him".....there are usually a few in that camp lurking around

I dont like being jerked around....excuse after excuse....promise after promise broken..... nothing changes. Be honest and hold to your end and we can work together.... keep jerking me around and I'm done with you.

I'm not renewing....... only thing I would even remotely consider doing...... M2M..... one more late and you are gone. no exception. If they guy would have at least given my property manager a head's up - 'hey, I'm going to be late, I'll pay with late fees by this date' - this would be fixable.

If the guy would have at least given my property manager a head's up - 'hey, I'm going to be late, I'll pay with late fees by this date' - this would be fixable. But to sit around every month, wondering when - and if - he will pay, is not worth the bother.

0 Votes

Las Vegas, Nevada

Quote from @Theresa Harris:

If he's not paid on time for the last 4 months, I would have talked to him after the first late payment. If he's having problems paying the rent, he's probably better off finding a less expensive place to live or moving into a place with a roommate. Either way, not your problem. Give him notice that you are not renewing the lease.

My property manager has had several convos with him. Every time it's a different excuse with the unemployment money being late or pushed back. He said he had a new job coming, but they were waiting for the background check to get approved. I have no idea what he's going to say for this month. He's already had three 7-day notices, but always pays - with late fees - before the notice is up and we move to potential eviction.

What's funnier is that the last convo the property manager had with him in September, he said he wouldn't be late again and was asking her about upgrading the flooring in 2023 and expressed concerns regarding a potential rent increase in January - and then he's late again. As you stated, forget an increase, it's time to part ways.

1 Vote

Las Vegas, Nevada

Quote from @Account Closed:

@David Song I'm just super fascinated by the impact a once in a lifetime pandemic had on the Vegas real estate market (and other markets like yours). I started investing in Vegas back in 2011. I bought my former primary residence as a HAP short sale for $156k and no one wanted the home. We were the only offer. The house value shot up to over $500k during the pandemic. My current residence which is a luxury home doubled in value during the pandemic. I was watching all this happen and thinking....this is not normal. What a fun time to be in real estate to watch the market shift like it has been.-Heidi

I usually buy 1-2 properties per year in Las Vegas, in cash, in areas that are in demand like Summerlin or Boca Park.

I'm waiting for the prices to get a bit lower, maybe I'll make a run at something in early 2023. I have 12 at the moment, free and clear.

One area I'm watching, where I own four properties already, prices went from an average of 270-280 at the start of the year to 235-245 at the moment - and some are still sitting on the market 30-60 days out. At the start of the year, people were outbidding me with ridiculous sums like it was some Ebay war - and I would just roll my eyes and walk away.

0 Votes

Las Vegas, Nevada

I bought a property a year ago in Las Vegas. It had a pre-existing tenant who was there for the past few years.

He's been fine for the most part, signed a new lease in January with a very minor increase (I think 25 bucks).

However, the last four months he's been late with the rent.

I believe he lost his job, but does receive unemployment. He does pay, with late fees, eventually. He's yet to pay October rent, but I believe he eventually will (he's sometimes late by 2 weeks).

He never gives notice that he's not paying on time and usually pays before the 7 day non-payment notice expires.

His lease comes up in late January and we have to send a 60 day notice (from what my property manager says) if we plan to renew the lease and/or increase rent (so sometime next month we have to send a notice).

I actually own 3 others in that community and he's paying as much as 300 less per month than some of my others.

However, this is not about the money, I own everything free and clear, this is more about headaches. I would have gladly renewed the lease with another minor increase had not all of these issues come up.

I just don't want to issue a new lease, I would rather non-renew, remodel and rent for more. There are just too many red flags of future issues.

What would you do in my position?

I'm hoping that when I non-renew he voluntarily leaves to a new place (which may be hard getting approved with him being out of work but I can't worry about that)

I've never had to evict anyone before. If he refuses to leave at the end of the lease or stops paying rent, how hard would it be to evict in the current landscape? Some of my friends have been able to evict non-paying tenants without issues, especially when there was no lease involved, but since I've never been through this before I have idea what's going on in the courts at the moment.

0 Votes

Las Vegas, Nevada

Ive never bought from any of them, but Opendoor among others contact me all the time to make offers to me.... by phone, text, mail, email.

0 Votes

Las Vegas, Nevada

I buy in cash so I'm taking things step by step and looking for the best deals. I bought one last October for 50K more than I did for another unit in that community with the same floor plan 15 months earlier. However, I recently went to go buy another one in that community with the same floor plan - and this time around it was 68K more than what I paid even last October. I decided to pass and I'm looking at other areas, talking to other investors to buy "as-is" properties in the right areas.

6 Votes

Quote from @Chris Mason:

Quote from @Lily Sellers:

Got pre-approved for another investment property for only 200k (not much in my market) But, I have more than enough equity in one of my other properties that would cover more than enough for the difference I want to spend on a specific property. I tried seeing my options for refinancing the house to tap into some of the equity but the mortgage lender I'm using told me My DTI ratio is too high (Hasn't been two years reporting tenants renting, and my second job hasn't been secured for two years) So I can't refinance the loan. Other than waiting out the two years to include both of the previously mentioned incomes, is there another way to tap into the equity of my house? Does HELOC's go off of DTI ratio as well? Is there any other options other than refinancing and Helocs? Is DTI different for different mortgage lenders? Thanks in advance friends. Because of everyone's expertise on these forums I have already made life changing investments in the last year.

Landlord/rental income from a traditional long term tenant is actually the ONLY form of self-employment income where Fannie/Freddie do NOT require a 2 year history on tax returns.

Try a different lender. Don't rush to the DSCR subprime option when there's still a really good chance you can get A-paper Fannie financing.

Hey Chris, I'm currently being offered a DSCR loan, over 30, on a property I'm short on buying all in cash right now. The loan won't be for long, it's only for 105K as I'm dropping like 60% down. I'll likely pay off the balance by the end of the year, I just didn't have enough to buy it straight up.

Any drawbacks to these types of loans? Never did them before.

0 Votes

Quote from @Nathan Gesner:

Has anyone else watched this limited series? "Roommate Wanted" is a two-part series about Jamison Bachman and how he became a roommate and then wreaked havoc on people's lives. This should be mandatory watching for any Landlord.

I watched it. Binged it one day. The one with the lawyer who ripped off roommate after roommate would make me terrified to invest - if I didn't start investing years ago... HA

1 Vote

Quote from @Chris A.:

Quote from @Mark S.:

Las Vegas is crazy too. I'm a cash buyer, either all up front or 50-60% down - and it's nuts out there. I currently have 10 free and clear.

I'm trying to get an eleventh. I put in offers and others start bidding over list and push me out, sometimes over list by 15K - and usually investors from Cali.

I was lucky to start buying in cash in 2018. For example, townhouses I bought for 240 and now going for 380, condos I bought for 170 are going for 265. Another townhouse I dropped 270 on is now nearing 430.

It's become near impossible for me to buy straight-up in those higher-end areas, because prices are nuts. And I say nuts because 20% down on most properties are nothing, because you lose money even with top market Vegas rent. Right now I'm looking to drop as much as 140K down on my next one and pay it off in full by next year, but I keep getting outbid. I went 6K over list on the last property I place an offer on and I was still outbid. However, I only target the hotter areas in town, because I only want certain types of tenants and very high rent revenue - plus guaranteed equity increases from year to year - all of which I've obtained on my first 10.

Sounds like you are in an amazing spot Mark. How did you start off?

sold a company I created for a few million, had a good amount saved in the bank. decided to risk the bulk of it on buying real estate

1 Vote

Las Vegas, Nevada

Quote from @Joe Villeneuve:

Quote from @Mark S.:

Quote from @Joe Villeneuve:

Quote from @Mark S.:

Personally I always go with better markets, high demand areas with expected future equity increases. On the other hand, I buy in cash or pay at least 50-60% of what I'm buying and pay it off that year or the next.

So far I have 10 properties free and clear and bring in around 14K in rents per month (168K annually). I'm in talks right now for number 11, which I submitted an offer on. If a deal is reached, I'll be putting down at least 130-140K upfront and paying it off fully next year.

I have a high paying day job. One day I won't - and when that day comes I don't want to have numerous mortgages hanging over my head. That's why I buy the way I buy. It's more of a nest egg when I don't want to work any longer - and a cash-out when the times comes to retire.

Also, my equity has skyrocketed with the crazy market. I mean, I have condos I bought at 140 going now for 250+, townhouses that I got for 250-270, going for 350-450. My equity growth has been as mesmerizing as the cash flow. And I only started buying in mid-2018.

You really like to spend a lot of your own money don't you.
How much of that "mesmerizing equity growth" did you pay for?...and isn't really growth?
...and most of that CF you love is still paying you back for what you spent on the property (all cash and/or cash payoffs from your pocket). That "cash flow" isn't profit until you recover all of your cash you put in from the cash you get out (cash flow).

Based on your numbers above:
1 - I'm taking the average of the TH and Condos = $195k per property (I'll round that off to $200k...just because I'm sure you had other out of pockets)
2 - $200k properties x 10 = $2M in cash you spent buying them.
3 - $14k/m in rent - T/I (assuming $6k) = about $8k actual CF/month x 12 months = $96k/year (call it $100k)
4 - $2M in cost = 20 years to recover your cost and start making a profit.
$100k/yr

Your numbers are off and you are POORLY misinformed. My PROFIT is 14K a month.

Last year I made around 170K in rent revenue. Based on your logic, I would make back my investment in 10-12 years. I'm still pretty young, I can wait that long standing on my head, maybe you can't. Patience is a young man's game some say.

Your remind of a guy I knew. I remember starting one of my internet companies in 2003 with almost no money invested. I coded and designed the whole thing. I was basically a kid. A partner I had pulled out in 2005, told me it would take 10-15 years to make our business huge. He left in 2005, I stuck around and kept it going, I sold the business in 2017 for millions and began my investments.

And yes, the equity is REAL. I sold a condo last year, that I purchased in 2018 for 145, for 270 - as is.

Not everyone can buy how I buy because you need the money to do so. My day job allows me the salary to do so. Some invest in stocks, crypto, etc. I invest in real estate and small businesses.

I have a family to think about. I could go to my grave tomorrow with no worries, because my wife won't have any mortgages, loans or liens to worry about. She can focus on our kids, not scramble for work, and has a full cash flow raining in. That's my main motivation more than anything.

Sorry about the missed numbers but I had to go with assumptions from what you gave us. The numbers may have changed, but I the basic premise holds true. You're spending a lot more money to get your "profit" than you need to. A LOT more. You could very well be making 5 times what you are, or if your prefer, cost you one fifth of what you spent to get the same profits. Your choice.

The numbers don't work in the Vegas market, because of top market rents. I want a certain profit margin on every property.

I already looked at only dropping 30% down on this townhouse that was 350K or so. Between the mortgage and expenses, I would barely break even. In some other deals where I looked at dropping 20-25%, I would only make 100-300 a month in profit off that property. That's just not enough for me - and that's even if I charge top of the market rent.

For arguments sake, let's say in 20 years I sell my portfolio and I can only recoup that 2 million that was placed in - well, I still probably made 1.5-2 million in rent by that point.

Something that always stuck with me, and maybe that's why I do it the way I do it. When I first moved to Vegas in 2010, I was renting a house from an investor based in California. He drove in just to show me the place. But I always remember him telling me that he used to own 6 houses and when the market dipped he went upside down in his mortgages and lost 3 of those homes - and he was losing 3-400 on my rent at top market.

1 Vote

All Forum Posts by: Mark S.

Mark S. has started 5 posts and replied 38 times.

Post: Tenant Late With Rent Last 4 Months, Should I Non-Renew Lease

Post: Tenant Late With Rent Last 4 Months, Should I Non-Renew Lease

Post: Any sign of stabilizing in Las Vegas market?

Post: Tenant Late With Rent Last 4 Months, Should I Non-Renew Lease

Post: Love it or Hate it? Opendoor, Offerpad, UpNest, Zhomes, etc

Post: QOTW: Are you buying properties in our current market and why

Post: Mortgage Lender wont let me refinance equity. Options?

Post: Anyone watching? Netflix - Worst Roommate Ever

Post: Investing in Las Vegas NV area

Post: Do I buy more or buy in higher appreciation markets